Richard Costello : And really, Alex, it’s very much going to vary by community on a blended basis. We went from 3.9% to 4.4% total incentives during the quarter from Q3 to Q4. So if interest rates are going to remain high, they’re going to be a little bit higher. So it really will depend on what your forecast is for interest rates.
Alex Barron : Got it. Jim, in terms of — I was wondering if you guys have any kind of average statistics for your average consumer. What’s their household income? What’s their average FICO, what’s the average down payment that they’re putting down, those types of things?
James Brickman : Well, the average FICO was 743. Obviously, that varies as you move out in the perimeter, it goes down. And as you move into a AAA location, it goes up as does the down payment. Down payments with our Florida builder, GHO, are over $100,000. Our cancellation rate, I think, was 1 as a result. When you go to a C location, we will experience probably the more typical 15% to 16% cancellation rate. And in the infill locations, they’re still single digit.
Alex Barron : What about household incomes that you guys are seeing?
Jed Dolson : They range so widely just even within Trophy that I hate to give an exact number on that. It’s really community by community.
Alex Barron : I guess what I’m just trying to get at is there’s this wide perception that 8% is like hard for people to qualify. But obviously, that depends what people are looking at the home, so that’s what I’m trying to get at.
James Brickman : Well, our mortgage joint venture tells us there’s still wiggle room in incomes, but we’re pushing on the C location, the most of the buyer can pay. If that answers your question?
Jed Dolson : Yes. I would add that in the perimeter locations, we’re seeing the debt-to-income ratios in the low 40s. Yes. And it’s not uncommon for average household income for — in those far perimeter locations $8,000 to $10,000 a month.
James Brickman : Alex, let me touch on one other thing that I don’t think we communicate enough to analysts and investors. Our Trophy brand — Jed, what’s the smallest down payment or earnest money deposit we get at the Trophy?
Jed Dolson : Yes, Typically $5,000.
James Brickman : Okay. So let’s say, it’s $4,000 to $5,000 in Trophy. Many of our peers when you take a look at their backlog, they’re accepting contracts with a $500 earnest money deposit. It’s basically a free option for buyers. That’s another reason why our cancellation rate is so much lower because we’re not a credit repair shop. We actually expect people when they give us earnest money to buy a house and close.
Jed Dolson : And we’re seeing most buyers transact, especially with the Trophy brand, we’re seeing them buy finished homes where they can contract and close within 30 days.
James Brickman : So what I’m trying to say is all backlogs are not created equally. We have a higher quality backlog.
Alex Barron : Got it. And if I could ask one more, are you guys using forward commitments to lower the rates or just standard buy down the points — standard rate buydown?
Jed Dolson : We’re using some forward commitments, but we — our typical incentive package, the consumer is using it to partially pay down rates and partially pay for closing costs. We’re — our mortgage JV tells us that for this quarter, our average rate for mortgage close was about 100 bps underneath what market rate was that day — during that time period. So they’re using some of that incentive to buy down the rate.
Operator: [Operator Instructions] Ladies and gentlemen, at this time, there are no further questions. This concludes today’s call. Thank you all for joining. You may now disconnect.
